Here are a list of common terms that you will often hear as an investor:
Bonds: A type of loan provided to companies and governments with regular interest payments until the initial loan amount is repaid at the end of an agreed period.
Diversification: Spreading money across different types of investments and asset class in order to reduce risk.
Equities: Another term for shares in companies traded on the stock market.
Inflation effect: The effect of rise in food prices, gas prices, cost of various goods and services over time affects your purchasing power resulting in impact on your long-term savings and your retirement.
Investment portfolio: A mix of different types of investment within an overall investment plan.
Market timing strategy: Attempting to sell when share prices are high and buy when they are low by guessing the direction of the stock market.
Mutual funds: A type of investment which pools together money from many individuals and invests in different markets and areas under the direction of a professional manager.
Regular saving plan: A plan where the investor contributes regular amounts towards their investment.
Returns: Percentage growth of an investment over a given period, usually one year.
Risk: The uncertainty or unpredictability of investment returns.